National Oilwell Varco (NOV) was trading 5% lower on Monday morning after the company warned that Q1 revenue would be lower than expected.
After last week’s big move higher, today’s dip produced what is known as a “kicker pattern,” which often signifies a tone change.
NOV announced today that it expected Q1 revenues of $1.8 billion compared to Wall Street estimates of $1.9 billion.
This is due to weakness in three customer segments: subsea production equipment, offshore rigs, and drilling/servicing equipment.
This stock was good, based on the upward trending patterns that were in place. However, we are cautious given that the big move lower may end up signifying a shift in tone.
In all likelihood, the stock is forming a topping pattern. See our weekly chart forecast below.
National Oilwell Varco (NOV) Stock Chart with Weekly Bars
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